CREDITS AND COLLECTIONS 327 



leniency of the merchant who sells him goods. By being properly 

 supported by the creditors such a debtor will usually be able to 

 readjust his financial affairs so that he in time will be able to 

 pay his creditors in full. The insolvent debtor is the one whose 

 property wiU not pay his Uabilities. A firm may actually be 

 insolvent long before it becomes an acknowledged fact and 

 accounts may be collected. Payments will become suspended 

 after it becomes an acknowledged fact that the debtor is insol- 

 vent. 



III. The Collector. — The collector is an important assist- 

 ant to the credit man. He should always pay strict attention 

 to the appearance of the business of his firm's debtors and 

 should therefore have a fair understanding of the value of goods. 

 If the debtor is not ready to pay the bill when presented, then 

 the collector should in a judicial manner secure information as 

 to the exact time when payment may be expected. The col- 

 lector will then make the necessary memorandum and this 

 should be followed up by his calling on the debtor on the partic- 

 ular day, and if possible a definite hour, when the payment of 

 the bill has been promised. Should the debtor fail to pay this 

 time it should be expected that he will present a satisfactory 

 reason for his delinquency. 



IV. Collecting by Correspondence. — It is of greatest im- 

 portance that statements be rendered at regular and definite 

 times. If two weeks' credit is allowed then statements should 

 be mailed every two weeks, leaving on the same mail each time. 

 It should be definitely agreed upon between creditor and 

 debtor that remittance should be forthcoming within a certain 

 number of days after the date of statement. If the statement 

 is dated on Monday of the week, most creameries will expect 

 remittance not later than Friday of the same week. If remit- 

 tance is not received by that time another statement should be 

 mailed the following morning. If remittance is not received 

 within a reasonable time after the second statement, then a 

 third statement may be rendered, bearing a footnote calling the 

 debtor's attention to the delinquency of the account and ad- 

 vising him that unless paid within a certain time a sight draft 



